With cryptocurrencies like Bitcoin and Ethereum now trading for thousands of dollars per token – this does make it somewhat unattractive for investors on a budget. The good news is that of the 12,000+ cryptocurrencies listed on CoinMarketCap – many are still trading for less than a dollar
In this guide, we analyze the best penny cryptocurrency to invest in and how you can complete your digital asset purchase with a regulated online broker!
Best Penny Cryptocurrency to Invest in – Top Cryptocurrencies for Under $1
Below you will find an overview of the best penny cryptocurrencies to invest in right now.
- Ripple (XRP) -Overall Best Penny Cryptocurrency to Invest in
- Basic Attention Token (BAT) – Revolutionary Web Browser That Rewards Consumers
- Tron (TRX) – Popular Cryptocurrency Aiming to Decentralize the Web
Best Penny Cryptocurrencies to Buy – Full Analysis
With thousands of tokens now trading in the digital currency marketplace, knowing which project to invest in can be challenging. The good news is that with so many cryptocurrencies available to buy at less than $1 per token – you don’t need to risk huge amounts. In the sections below, you will find three of the best penny cryptocurrencies to invest in – based on the subjective views of the author.
1. Ripple (XRP) – Overall Best Penny Cryptocurrency to Invest in 2021
Although Ripple is one of the largest digital asset projects in this industry, its native token – XRP, is still a penny cryptocurrency at the time of writing. This is somewhat unprecedented when you consider when Ripple holds a market capitalization in the tens of billions of dollars. The reason for this disparity between valuation and market price is that there is a total supply of 100 billion XRP tokens.
Nevertheless, if you’re looking to add a significant number of tokens to your portfolio with a modest amount of money, this could be the best penny cryptocurrency for the job. For those unaware of what Ripple is, the project offers cross-border payments technology to banks and large financial institutions. The overarching problem that Ripple solves is the slow, cumbersome, and expensive transactions that currently take place in this space.
This is because most banks will use the SWIFT network to transfer funds overseas, which can take several days to arrive. Plus, SWIFT relies on correspondent banks when it comes to less liquid currency transfers, which can result in hefty fees. In the case of Ripple, cross-border transactions take less than 1-2 seconds to process – and at a network fee that amounts to just a small fraction of 1 cent. This is the case regardless of which currencies are involved in the transaction.
Crucially- and unlike many other cryptocurrencies in this arena – Ripple and its XRP token have a real-world use case. This is backed up by the fact that over 200+ financial institutions are already trialing the technology. In terms of price performance, this top-rated penny cryptocurrency can be extremely volatile. With that said, long-term holders have been rewarded in recent years – not least because XRP was initially trading at just $0.005 when it was first launched in 2013.
At the time of writing, with XRP trading at around $0.89 per token – this represents 8-year gains of over 18,000%. Earlier in the year, XRP hit 52-week highs of $1.96. As a result, by entering the market while XRP is trading at sub-$1 – you are potentially getting yourself an attractive discount. In terms of how to invest in this popular digital asset-regulated brokerage site eToro requires a minimum stake of just $25. Based on current prices, this could get you just over 27 XRP tokens.
Pros
- Sizable gains since XRP was launched in 2013
- Cross-border payment technology being used or trialed by over 250 banks
- Low-value crypto-asset – so you can buy a significant number of tokens with a small amount
- Transactions take seconds to process and fees are minute
Cons
- Huge number of tokens held and controlled by the Ripple management team
- Many argue that the project is too centralized
2. Basic Attention Token (BAT) – Revolutionary Web Browser That Rewards Consumers
If you’re interested in new technologies and solutions to age-old problems – Basic Attention Token is one of the best penny cryptocurrencies to invest in. In its most basic form, this project seeks to revolutionize the global advertising industry. The main concept here is that Basic Attention Token connects consumers with relevant adverts. This is achieved through the Brave Browser – which is backed by Basic Attention Token.
The system incorporated by the project is a win-win situation for both consumers and advertisers for several reasons. First and foremost, marketing companies can be sure that they are showing their advertisements to people that are actually interested in their products and services. Similarly, consumers will only see ads that they are likely to want to explore further – as opposed to seeing promotions that have no relevance to their needs.
Furthermore, and perhaps most importantly, Basic Attention Token cuts out the middleman. By this, we mean third-party platforms like Google, Facebook, and YouTube. In other words, when companies pay advertising fees, the funds will actually be distributed to those viewing the advertisements. This essentially means that users of the Brave Browser will receive rewards for viewing ads – paid in the form of BAT. This innovative concept has resulted in Basic Attention Token increasing in value by an attractive amount since it was launched.
For example, back in mid-2018, a single BAT token would have cost you just $0.16. Fast forward to mid-2021 and the same cryptocurrency hit highs of over $1.53. This means that in just 3 years of trading, Basic Attention Token has grown by over 850%. With that said, and like most digital assets, BAT tokens have since dropped in value. At the time of writing, you can obtain this popular cryptocurrency at just $0.57. Based on its 52-week high of $1.53 – this will allow you to enter the market at a discount of 62%.
Pros
- Revolutionizing the digital advertising industry
- Users are rewarded for viewing relevant ads
- BAT is trading for less than $1
- Great real-world user case
- Backed by a proven team
Cons
- It remains to be seen whether or not the BAT concept will take-off
- Other digital currencies have performed much better in 2021
3. Tronix (TRX) – Popular Cryptocurrency Aiming to Decentralize the Web
The next penny cryptocurrency to consider adding to your portfolio is Tron. This popular digital asset was first launched in late 2017 at a price of just $0.003 per token. The overarching objective of this project is to “decentralize the web”. More specifically, the team at Tron aims to cut out third-party content platforms like YouTube and iTunes.
The reason for this is to put control of content rights back into the hands of the creator. In its present forms, third-party platforms – such as those mentioned above, which take a huge cut from content creators. Although this still allows music and video creators to earn money on their content – most of the gains paid for by advertisers will go to the respective platform. But, in the case of Tron, the project allows content creators to earn and keep 100% of any capital generator for their output.
This is achieved through the Tron blockchain – which allows buyers, sellers, and marketing agencies to connect on a peer-to-peer basis. In terms of the TRX token, this is used to fuel the Tron network. That is to say, all funds generated from digital content sales will be paid in TRX. The blockchain itself is actually one of the best-performing networks in this industry. For example, it takes just seconds for a transaction to be confirmed by the network.
Plus, the Tron blockchain can handle around 2,000 transactions per second – and it can even facilitate smart contract technology. In comparison, fellow smart contract platform Ethereum can handle just 16 transactions per second. When it comes to pricing, Tron is currently trading at just $0.08 per token. With this in mind, an investment in this digital asset of just $100 would get over 1,250 Tron tokens for your portfolio. At eToro, you can buy Tron on a spread-only basis and at a minimum investment of just $25.
Pros
- Looking to decentralize the web
- Removes the need for third-party content platforms
- Content creators earn Tron tokens
- Tron blockchain can handle 2,000+ transactions per second
- Smart contract capabilities
Cons
- Several competitors in this industry
- Very volatile
Where to Buy the Best Penny Cryptocurrencies Today
Binance – Best Platform to Invest in Penny Cryptocurrencies for Diversification
In terms of fees and commissions- this will depend on a number of variables – such as where you are based on how you intend on depositing funds into your account. For example, if you are funding your account in crypto – there are no fees. This will also remove the need for you to go through a KYC process (limits apply). Standard commissions on this platform amount to 0.10% per slide – which is very competitive. If, however, you want to buy penny cryptocurrencies with a debit or credit card – the fees will be much higher.
For example, in the UK, the standard debit/credit card fee stands at 1.8%. Those based in the US get a much better deal, as the commission here is reduced to 0.5%. In some countries, bank transfers are also supported – as this is typically available on a fee-free basis. At Binance, you will find two trading suites – one for beginners and another one for experienced investors. The latter comes packed with advanced trading tools – such as technical indicators and integration with TradingView.
Once you have invested in your chosen penny cryptocurrencies, you can leave the tokens in your Binance web wallet. If you do choose this option, make sure that you set up 2FA. You can also withdraw the tokens to the Trust Wallet – which is backed by Binance. This is a decentralized storage option that comes in the shape of a mobile app – so you will retain full control of your private keys. Finally, Binance also offers savings accounts that allow you to earn interest on your purchased penny cryptocurrencies – so this is worth checking out.
Pros
- Facilitates billions of dollars in daily trading volume
- Supports hundreds of digital asset pairs
- Near-instant deposits via debit/credit card
- Trading commission starts at just 0.1% per slide
- Offers crypto savings accounts
- Ideal for both beginners and experienced traders alike
Cons
- Not all supported cryptocurrencies can be purchased with a debit/credit card